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Is Now The Time To Look At Buying Sterling Bancorp (NYSE:STL)?

Simply Wall St

Sterling Bancorp (NYSE:STL), operating in the financial services industry based in United States, saw significant share price movement during recent months on the NYSE, rising to highs of $21.99 and falling to the lows of $18.7. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Sterling Bancorp's current trading price of $19.34 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Sterling Bancorp’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Sterling Bancorp

What's the opportunity in Sterling Bancorp?

Great news for investors – Sterling Bancorp is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $26.43, but it is currently trading at US$19.34 on the share market, meaning that there is still an opportunity to buy now. However, given that Sterling Bancorp’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Sterling Bancorp?

NYSE:STL Past and Future Earnings, August 20th 2019

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Sterling Bancorp, it is expected to deliver a relatively unexciting earnings growth of 2.5%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for Sterling Bancorp, at least in the near term.

What this means for you:

Are you a shareholder? Even though growth is relatively muted, since STL is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on STL for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy STL. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Sterling Bancorp. You can find everything you need to know about Sterling Bancorp in the latest infographic research report. If you are no longer interested in Sterling Bancorp, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.